The Multi-Stakeholder Group of the Ghana Extractive Industries Transparency Initiative (GHEITI) has urged the government to strictly ring-fence oil revenues earmarked for the proposed “Big Push” infrastructure programme, warning against any diversion of the funds.
The Group said protecting the Annual Budget Funding Amount (ABFA) allocated from petroleum revenues would help maximise their impact, particularly in accelerating road construction, improving national connectivity, and delivering visible infrastructure outcomes.
According to GHEITI, ring-fencing would also strengthen transparency and accountability by enabling the Public Interest and Accountability Committee (PIAC) to clearly track and report on how petroleum revenues are utilised.
The recommendation comes as government reviews the Petroleum Revenue Management Act (PRMA), 2011 (Act 815), with the aim of increasing the share of oil revenues used to finance the US$10 billion Big Push infrastructure initiative.
The initiative seeks to address Ghana’s estimated housing deficit of more than two million units, rehabilitate deteriorating urban roads, 57 percent of which are classified as poor, and improve water, sanitation, and employment opportunities for the youth.
GHEITI’s call is further informed by recent declines in oil output and revenues. In 2023, crude oil production fell by 6.7 percent, leading to a 25.65 percent drop in petroleum revenues to US$1.062 billion.
The downturn was linked to the maturity of key fields, including Jubilee, Tweneboa-Enyenra-Ntomme (TEN), and Sankofa-Gye Nyame (SGN), reducing the sector’s contribution to total government revenue to 9.35 percent.
The Group also noted that the Ghana National Petroleum Corporation (GNPC) and its subsidiary, Explorco, have not paid corporate income tax on revenues from their seven per cent interest in Jubilee and TEN since 2021, largely due to weaknesses in enforcing ring-fencing provisions.
Presenting the oil and gas sector report, Mr Fadil Iddi of the EITI Secretariat said prioritising Big Push projects would ensure petroleum revenues are channelled into tangible infrastructure with clear public benefits.
However, he cautioned the Ministry of Finance against spreading oil-funded projects too thinly.
“Ring-fencing projects financed with petroleum revenues will allow PIAC to report clearly to stakeholders. Co-mingling funds will obscure the visibility of projects supported by oil revenues,” Mr Iddi said.
In a speech read on his behalf, the Minister of Energy and Green Transition, Dr John Abdulai Jinapor, said the government had taken steps to reverse declining production, including securing a US$3.5 billion revitalisation investment.
He disclosed that Memoranda of Understanding had been signed with partners in the Jubilee/TEN and Offshore Cape Three Points (OCTP) fields to expand reserves and restore investor confidence.
He added that reforms to address gas aggregation challenges and strengthen regulatory certainty had renewed interest from major international oil companies.
Meanwhile, Mr Patrick Nomo, Chief Director at the Ministry of Finance and EITI Co-Chair, said extractive activities contributed GHS1.8 billion to local development and infrastructure projects and about GHS16.7 billion to domestic revenue in 2023.
The sector also accounted for roughly seven per cent of total government revenue and generated net foreign exchange inflows of US$3.9 billion.
Mr Nomo stressed that EITI reports were critical tools for fiscal forecasting, budgeting and national economic management, urging stakeholders to support stronger governance and reliable data for informed policymaking.
